The Nigerian Liquefied Petroleum Gas, NLNG says its domestic LPG pricing is most competitive compared to all other alternatives including imported and domestic supply. However explains that several factors such as VAT, Forex, etc., impact the pricing of the product which is indexed to the international pricing model.
On the supply side, the company in a statement said it plays a pivotal role in the Nigerian domestic LPG market in line with the commitment it made to help deepen the market.
Recently, NLNG increased the volume of its annual commitment to the market from 350,000 to 450,000 metric tons, which is about 100% of its Butane production. Butane gas is less volatile and is, therefore, suitable for cooking.
The company says NLNG’s current maximum Butane production meets about 40% of domestic demand. The balance is supplied by other domestic producers or via imports. Therefore, NLNG’s production alone is not sufficient.
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The statement added that in order to achieve its aspiration for the domestic supply, a dedicated 13,000 metric ton vessel, LPG Alfred Temile, delivers the product to the market through Lagos and Port Harcourt terminals. But The vessel’s delivery to these terminals are occasionally hampered by challenges at the terminal, including storage capacity, terminal access, draft restrictions and prioritisation of other products over LPG.
Editor: Paul Akhagbemhe
